Core Insights - Merck & Co reported higher third-quarter revenue driven by growth in its cancer drug Keytruda, despite a decline in sales of the HPV vaccine Gardasil in China [1][5] - Shares fell nearly 2% after the company lowered its full-year revenue forecast to $64.5 billion to $65.0 billion from a previous range of $64.3 billion to $65.3 billion [1][2] Financial Performance - The company posted revenue of $17.28 billion for the quarter, exceeding analyst estimates of $16.96 billion [4] - Adjusted earnings per share were $2.58, surpassing Wall Street estimates by 23 cents [5] - Keytruda sales increased by 10% to $8.1 billion, while Gardasil sales fell to $1.75 billion, which was still above the forecast of $1.66 billion [5] Market Dynamics - Merck's stock has declined approximately 5% in 2025 as investors assess the company's growth strategies beyond Keytruda amid potential U.S. drug pricing reforms [2] - The CFO indicated that while Keytruda is expected to continue growing, the pace may slow due to peak penetration in some indications and pricing pressures in international markets [3] Product Pipeline - The company is focusing on new drugs, including Winrevair, which saw a 141% increase in sales to $360 million, and Ohtuvayre, acquired in a $10 billion deal [4] - However, sales of Winrevair were below expectations, raising concerns about its role as a key growth driver [4] Regional Sales Performance - Gardasil sales outside of China fell by 3%, primarily due to decreased sales in Japan after the end of a reimbursement program for catch-up vaccinations [5] - The company has paused new shipments of Gardasil to China as distributors manage existing inventories amid reduced demand [5] Earnings Outlook - Merck expects full-year earnings to be in the range of $8.93 to $8.98 per share, an increase from the previous forecast of $8.87 to $8.97 [6]